I am between ages 62 and SSNRA and collecting SS benefits and working part time. I know for 2005 I could earn up to $12,000 without having benefits affected. I will actually earn more than that this year. According to SS, my benefit will be reduced by $1 for every $2 I earn above $12,000. Does anyone know how they actually do this?

Will the monthly payment be reduced (i.e. spead it over the year) or will they take it out of the first payment, or what? How long does it take for them to know that I've made too much and make the reduction?

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